A major public campaign to significantly raise the point at which people start paying income tax has crossed a crucial threshold, putting pressure on the government to respond.
Petition Reaches Halfway Point to Parliamentary Debate
An official petition on the Parliament website, calling for the income tax personal allowance to be increased from £12,570 to £20,000, has now been signed by more than 50,000 people. This milestone, reached in early January 2026, means the campaign is halfway towards the 100,000 signatures required to force a debate in the House of Commons.
Under parliamentary rules, any petition that secures 100,000 signatures must be considered for a debate. This would compel the Treasury to publicly lay out its plans and defend its current policy position on income tax directly to MPs and the public.
Public Anger Over "Ridiculous" Tax and Living Costs
The petition was launched by Shannon Keene, who argues the change is urgently needed to help struggling households. "This would help with increasing rent, mortgages, Council tax, and Gas and Electric bills," the petition states. It highlights that some families find returning to work unaffordable after having children because high childcare costs can wipe out their entire income.
"We think that we are currently paying ridiculous amounts of tax, and that minimum wage isn’t even enough to support an average family," the petition adds. Supporters believe raising the threshold would create a major incentive for people to seek employment, removing a barrier where work does not currently pay enough to cover soaring living expenses.
The campaign emerges against the backdrop of Chancellor Rachel Reeves' decision in the Autumn Budget of 2025 to extend the existing freeze on income tax thresholds. The freeze, originally set to end in 2028, was prolonged until 2031, a move that drags more people into higher tax bands as wages rise with inflation.
Treasury Rejects £20,000 Allowance Citing £50bn Cost
In a formal response to the petition, the Treasury has firmly rejected the proposal. The government stated it is "committed to keeping taxes for working people as low as possible while ensuring fiscal responsibility" and confirmed it "will not increase the Personal Allowance to £20,000."
The Treasury's rejection is grounded in the enormous projected cost of the policy change. Officials estimate that increasing the allowance to £20,000 would come at a significant fiscal cost of more than £50 billion per annum.
"This would reduce tax receipts substantially, decreasing funds available for the UK’s hospitals, schools, and other essential public services that we all rely on," the statement warned. To illustrate the scale, the Treasury equated the £50 billion figure to roughly a quarter of the entire NHS budget or around 80% of annual defence spending.
Instead, the government pointed to other measures aimed at supporting lower-income workers and families. These include:
- Directing the Low Pay Commission to account for the cost of living in its recommendations for the April 2025 minimum wage rates.
- Expanding government-funded childcare, with 15 hours for all parents of 3- and 4-year-olds and 30 hours for eligible working parents of children aged 9 months and above.
The Treasury concluded by noting that all taxes are kept under review and that any future changes will be announced by the Chancellor at the next scheduled Budget on 26th November 2026. For now, the campaign organisers will need to gather another 50,000 signatures if they wish to see the issue debated by MPs in Parliament.
